Topic 4 - Everyday Banking

Question 1

What are the different types of current account?

Answer 1

Standard
Packaged
Basic
Student
Youth
Premium
Other

Question 2

What are the three basic functions of a current account?

Answer 2

1) make and receive payments
2) save
3) borrow

Question 3

What is a current account?

Answer 3

A bank or building society account where people can store their money in the form of an electronic balance and withdraw to make payments

Question 4

What is a basic bank account?

Answer 4

A current account that allows people to store their money as an electronic balance and make payments by direct debit, standing order, prepaid cash card or by withdrawing cash. There is no debit card, cheque book or overdraft facility on this type of account.

Question 5

What is a student account?

Answer 5

A current account designed for students in higher education that charges low interest or no interest on overdrafts and offers other benefits such as low cost contents or travel insurance.

Question 6

What is a premier account?

Answer 6

A current account that offers additionalbenefits, such as a personal banker, for wealthy customers with an income or savings above a certain level

Question 7

Who is a basic account suited for and what does it offer?

Answer 7

Suited for people who wish to avoid borrowing or have not held a current account before.it offers a debit card or a cash card but no overdraft or check book

Question 8

Who are youth accounts suited for and what does it offer?

Answer 8

For under 18, offers a range of services depending on the age of the account holder. For example, cash cards, debit cards, standing orders, direct debit, a check book etc for people in the 16 -19 age group - For 11-15 age group a cash card or debit card

Question 9

What was introduced in 2004 as part of the government’s plans for financial inclusion?

Answer 9

Basic Bank accounts (ensuring that people have access to banking services)